On-demand start-ups: the hottest areas of venture capital

On-demand start-ups

One of the hottest areas of venture capital investing has had a cool start to the year: on-demand start-ups, ranging from food delivery to valet apps, face a moment of reckoning. As questions mount over Silicon Valley’s sky-high valuations, many of the companies that have been hit hardest are those that provide consumer services through an app. Some have had to cut valuation targets, while others have radically reoriented their business, pulled back from unprofitable markets or cut staff. Such shifts follows a period in which a glut of venture funding flooded the on-demand space, subsidising business models that have not always proved to be sustainable. More than $6.5 billion was invested in on-demand start-ups last year… which is 10 times the level of 2013. (These figures exclude big fundraising rounds from Uber, Lyft, Airbnb and Didi Kuaidi).

 

Leslie Hook

Food4Brains

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